diff --git a/spec/tokenized-buffer-iterator-spec.js b/spec/tokenized-buffer-iterator-spec.js
index 639714136..8d0e458f4 100644
--- a/spec/tokenized-buffer-iterator-spec.js
+++ b/spec/tokenized-buffer-iterator-spec.js
@@ -37,4 +37,67 @@ describe('TokenizedBufferIterator', () => {
     expect(iterator.getCloseTags()).toEqual(['foo'])
     expect(iterator.getOpenTags()).toEqual([])
   })
+
+  it("reports a boundary at line end if the next line's open scopes don't match the containing tags for the current line", () => {
+    const tokenizedBuffer = {
+      tokenizedLineForRow (row) {
+        if (row === 0) {
+          return {
+            tags: [-1, 3, -2, -3],
+            text: 'bar',
+            openScopes: []
+          }
+        } else if (row === 1) {
+          return {
+            tags: [3],
+            text: 'baz',
+            openScopes: [-1]
+          }
+        } else if (row === 2) {
+          return {
+            tags: [-2],
+            text: '',
+            openScopes: [-1]
+          }
+        }
+      }
+    }
+
+    const grammarRegistry = {
+      scopeForId (id) {
+        if (id === -2 || id === -1) {
+          return 'foo'
+        } else if (id === -3) {
+          return 'qux'
+        }
+      }
+    }
+
+    const iterator = new TokenizedBufferIterator(tokenizedBuffer, grammarRegistry)
+
+    iterator.seek(Point(0, 0))
+    expect(iterator.getPosition()).toEqual(Point(0, 0))
+    expect(iterator.getCloseTags()).toEqual([])
+    expect(iterator.getOpenTags()).toEqual(['foo'])
+
+    iterator.moveToSuccessor()
+    expect(iterator.getPosition()).toEqual(Point(0, 3))
+    expect(iterator.getCloseTags()).toEqual(['foo'])
+    expect(iterator.getOpenTags()).toEqual(['qux'])
+
+    iterator.moveToSuccessor()
+    expect(iterator.getPosition()).toEqual(Point(0, 3))
+    expect(iterator.getCloseTags()).toEqual(['qux'])
+    expect(iterator.getOpenTags()).toEqual([])
+
+    iterator.moveToSuccessor()
+    expect(iterator.getPosition()).toEqual(Point(1, 0))
+    expect(iterator.getCloseTags()).toEqual([])
+    expect(iterator.getOpenTags()).toEqual(['foo'])
+
+    iterator.moveToSuccessor()
+    expect(iterator.getPosition()).toEqual(Point(2, 0))
+    expect(iterator.getCloseTags()).toEqual(['foo'])
+    expect(iterator.getOpenTags()).toEqual([])
+  })
 })
diff --git a/src/tokenized-buffer-iterator.coffee b/src/tokenized-buffer-iterator.coffee
index 725041def..ad1834f09 100644
--- a/src/tokenized-buffer-iterator.coffee
+++ b/src/tokenized-buffer-iterator.coffee
@@ -1,10 +1,12 @@
 {Point} = require 'text-buffer'
+{isEqual} = require 'underscore-plus'
 
 module.exports =
 class TokenizedBufferIterator
   constructor: (@tokenizedBuffer, @grammarRegistry) ->
     @openTags = null
     @closeTags = null
+    @containingTags = null
 
   seek: (position) ->
     @openTags = []
@@ -12,9 +14,10 @@ class TokenizedBufferIterator
     @tagIndex = null
 
     currentLine = @tokenizedBuffer.tokenizedLineForRow(position.row)
-    containingTags = currentLine.openScopes.map (id) => @grammarRegistry.scopeForId(id)
     @currentTags = currentLine.tags
+    @currentLineOpenTags = currentLine.openScopes
     @currentLineLength = currentLine.text.length
+    @containingTags = @currentLineOpenTags.map (id) => @grammarRegistry.scopeForId(id)
     currentColumn = 0
     for tag, index in @currentTags
       if tag >= 0
@@ -23,8 +26,8 @@ class TokenizedBufferIterator
           break
         else
           currentColumn += tag
-          containingTags.pop() while @closeTags.shift()
-          containingTags.push(tag) while tag = @openTags.shift()
+          @containingTags.pop() while @closeTags.shift()
+          @containingTags.push(tag) while tag = @openTags.shift()
       else
         scopeName = @grammarRegistry.scopeForId(tag)
         if tag % 2 is 0
@@ -38,9 +41,11 @@ class TokenizedBufferIterator
 
     @tagIndex ?= @currentTags.length
     @position = Point(position.row, Math.min(@currentLineLength, currentColumn))
-    containingTags
+    @containingTags.slice()
 
   moveToSuccessor: ->
+    @containingTags.pop() for tag in @closeTags
+    @containingTags.push(tag) for tag in @openTags
     @openTags = []
     @closeTags = []
 
@@ -49,7 +54,16 @@ class TokenizedBufferIterator
         if @isAtTagBoundary()
           break
         else
-          return false unless @moveToNextLine()
+          if @shouldMoveToNextLine
+            @moveToNextLine()
+            @openTags = @currentLineOpenTags.map (id) => @grammarRegistry.scopeForId(id)
+            @shouldMoveToNextLine = false
+          else if @hasNextLine() and not isEqual(@containingTags, @nextLineOpeningScopes())
+            @closeTags = @containingTags.slice().reverse()
+            @containingTags = []
+            @shouldMoveToNextLine = true
+          else
+            return false unless @moveToNextLine()
       else
         tag = @currentTags[@tagIndex]
         if tag >= 0
@@ -70,16 +84,6 @@ class TokenizedBufferIterator
 
     true
 
-  # Private
-  moveToNextLine: ->
-    @position = Point(@position.row + 1, 0)
-    tokenizedLine = @tokenizedBuffer.tokenizedLineForRow(@position.row)
-    return false unless tokenizedLine?
-    @currentTags = tokenizedLine.tags
-    @currentLineLength = tokenizedLine.text.length
-    @tagIndex = 0
-    true
-
   getPosition: ->
     @position
 
@@ -89,5 +93,27 @@ class TokenizedBufferIterator
   getOpenTags: ->
     @openTags.slice()
 
+  ###
+  Section: Private Methods
+  ###
+
+  hasNextLine: ->
+    @tokenizedBuffer.tokenizedLineForRow(@position.row + 1)?
+
+  nextLineOpeningScopes: ->
+    line = @tokenizedBuffer.tokenizedLineForRow(@position.row + 1)
+    line.openScopes.map (id) => @grammarRegistry.scopeForId(id)
+
+  moveToNextLine: ->
+    @position = Point(@position.row + 1, 0)
+    if tokenizedLine = @tokenizedBuffer.tokenizedLineForRow(@position.row)
+      @currentTags = tokenizedLine.tags
+      @currentLineLength = tokenizedLine.text.length
+      @currentLineOpenTags = tokenizedLine.openScopes
+      @tagIndex = 0
+      true
+    else
+      false
+
   isAtTagBoundary: ->
     @closeTags.length > 0 or @openTags.length > 0